Inside Print. Modern Merchant Banking

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1 Inside Print Introduction from Roger Aust 3 Case study: Barnwell Print Limited 4 David Bunker Digital Print Finance 5 Case study: Rap Spiderweb Ltd 6 Meet Paul Philbrick Modern Merchant Banking

2 Introduction from Roger Aust Managing Director, Print division After nearly 30 successful years in the print industry, at Close Brothers Asset Finance we ve come to understand that for many organisations business is cyclical and seasonal. Depending on the type and mix of work, and the particular sector that a printing business supplies, this can lead to material changes in cash flow management could be a good time to revisit your company s capital base. At Close Brothers Asset Finance we specialise in understanding both the value of your assets and how we can maximise any equity release or restructure any existing debt (whether it s with us or another funder), without impacting your cashflow. Equity release is a means of retaining use of your assets that have capital value, while obtaining a lump sum to be used as you wish (relieve cashflow; pay for essential overheads) or for a steady stream of income, using the value of the asset. In effect, the asset s value generates a new source of earnings while keeping you in complete control of your business. Our input however, does not stop at only helping you with the equity release - our specialists complementary skills and ideas are there to help add value to your business. In our three decades, we ve helped many organisations maintain and improve their profitability and a strong cash flow position through our commitment to the Print sector. Close Brothers has a well-documented history of lending through all economic cycles and it s something we pride ourselves on. We know that profitable and effectively-run businesses don t become bad overnight, but they are instead the victims of decisions taken without their input, which is something we would never do. 2 InsidePrint We were one of the few lenders not to exit the market during the recent economic recession, and were the only financial institution that experienced steep levels of growth. Close Brothers could only do this because of the strong relationships it has with its customers, who know they can expect consistency at all levels. Please feel free to contact one of our specialists and see if we can help smooth your cashflow, ready to take advantage of the new opportunities that this year brings whatever the season. Roger We ve been supporting Print partners since the 1980s and we ll continue to do so into the future - whatever the financial forecast. We re here for the long-haul...

3 Case study: Barnwell Print Limited Business requirement: New printing equipment Product solution: Hire Purchase and RGF Possibly the UK s oldest family owned printing business Barnwell Print Limited is currently run by two fourth generation printers Lincoln and Julian Barnwell. Established by the Barnwell family in 1840, it is thought to be the oldest family owned printing business in the UK. The core business is commercial and digital printing, covering anything from digital business cards to full colour cased bound books. The customer base is nationwide across sectors such as tourism, local governments, education, charities, manufacturing, agencies and also direct with the public. Lincoln and Julian Barnwell have both been in the trade since they were 16 years old, so collectively they have 62 years of experience in the industry. To add to this further, Barnwell s workforce collectively equates to over 400 years of experience. Keeping up with demands In order to keep up with the competition and protect their customer base, the company wanted to increase their sheet size to an SRA1 by purchasing the Komori G37 H-UV printing press. This new press would replace the existing Komori equipment that was being used and would provide a faster turn around for them, as the new machine is able to produce print on a bigger sheet size, enabling more pages to go through on one pass. With the current equipment, the business struggles to get the operators to carry out overtime at the weekends and the flex created by overtime is disproportionately expensive. Lincoln and Julian met with Jonathan Bennett, Commercial Director at Close Brothers Asset Finance to discuss financial options for purchasing the new equipment. Having assessed the company s financial status, Jonathan discovered a well-established business, with the ability to service the proposed debt based on historic financials. The print industry is an ever changing dynamic and it is fundamentally in decline due to the proliferation of online media. As such, print firms are forced to innovate to survive and so, this means investing in new machinery to keep pace with competition and that failure to do so will result in a diminished business. Gaining a grant from the Regional Growth Fund Jonathan found that the business would be eligible for funding from the Regional Growth Fund (RGF) as they would be creating a job role within the business as a direct result of the upgraded machinery. Barnwell Print was successfully awarded a grant of 130,000 and Jonathan was also able to tailor the remaining financial requirements via a Hire Purchase product. This would allow the business to own the new equipment at the end of the agreement. Julian Barnwell, Joint Managing Director, commented: Many, many thanks for the time and commitment Close Brothers have invested in Barnwell Print throughout the funding process. With this financial support, we recruited a Business Development Manager, whose key role was to start building up our sales and activity in the market place, ready for the new press installation and this has now been successfully installed. If we hadn t had Close Brothers input and hard work, we wouldn t have been able to secure the government grant and additional funding, and subsequently, we couldn t have recruited for the new role or committed to the purchase of the new machine.

4 Digital Print Finance David Bunker, Assistant Managing Director of Close Brothers Asset Finance s Print division, tells us about the exciting launch of a new digital print product. We ve been listening closely to both customer and industry feedback and what we re hearing is that printers want a finance product that is aimed squarely at the digital print market. With that in mind, I m excited to announce that Close Brothers Asset Finance has launched a new initiative to provide soft lending against digital print assets for SME s in the UK print industry. This product is aimed at allowing the customer to fund the digital asset without the need to provide any deposit or guarantees. Whilst this is subject to the status of the business it has been designed to help printers preserve cash and help them make a quick decision in a fast moving part of the market. We re looking to work with our industry partners to bring this product to the market and also see this offering helping package deals being funded where it might include digital finishing machines to complement digital print engines. Digital print represents an increasing market opportunity, with customers using this technology having increased by 213% over the last five years as they seek to diversify from more traditional printing methods. All types of new or ex-demo digital production printing machines will be considered for finance, from high-speed, high-capacity printers for commercial printers and in-house departments to continuous feed printers for high volume printing. Details of the new product will be available on our website shortly - to find out more about Close Brothers Asset Finance s Print division, please visit or call Want to find out more?... The Close Brothers Asset Finance Print team is attending all the major industry events in 2017, where more details of the product will be available. closeasset.co.uk 4

5 Case study: Rap Spiderweb Ltd Business requirement: Management Buyout Product solution: Sale & HP Back Financial support ensures continued growth in challenging industry Rap Spiderweb Ltd is a Greater Manchester based print company, incorporated in The company offers lithographic and digital print services, data handling and processing, mailing and fulfi lment services. They operate two Heidelberg Speedmaster Lithographic presses and a brand new Xerox Versant 2100 digital press, along with a host of fi nishing equipment. Background Having owned the business for nearly 20 years, the departing shareholder and Director sold the business to James Tattum and Diane Horsfall. Diane has successfully managed the business for more than two decades in the role of General Manager, overseeing production, order management and as an outstanding supportive team leader. This in particular is evidenced by the length of service of her staff, currently averaging 17 years. Given Diane s continued dedication to the business, upon completion of the sale it was agreed that she would be the new Managing Director, allowing her a greater opportunity to steer the business at a strategic level. James, an already highly successful print broker with an abundance of knowledge and experience in print sales, brings particular specialisms in complex projects and fulfi lment work. Utilising Rap s presses for his existing customers will ensure turnover is quickly increased, allowing the business to move forward from its already strong position. The deal Joe Hall, Area Sales Manager of Close Brothers Asset Finance, and Andrew Metcalfe, Deputy Head of Sales (North and Midlands) of Close Brothers Invoice Finance, were approached by James and Diane to assist with the funding for the deal. The required funding was successfully raised against the plant and machinery with an equal contribution from the partners to fund the purchase of the shares from the former owner. Invoice fi nance was also put in place to ensure that cash fl ow requirements were met post buyout. The future The combination of old and new brings depth and experience in the operations department along with tenacity and a network of clients in the sales department. The already highly successful sales team has been further strengthened by the recent appointment of Damian O Hare who brings with him a wealth of existing relationships who are already benefi tting from the outstanding service and quality Rap are renowned for. With this and the new management structure in place, the company is now well placed to continue to grow and fl ourish in what is often considered a challenging industry. Commenting on the speed and effi ciency with which Close Brothers completed the deal Diane had this to say, Joe and Andrew remained unfazed by the challenging timescales the deal demanded and we are keen to work with Close Brothers going forward. James added, We see them as much more than just a fi nance provider and their support and industry expertise are invaluable to us. I am looking forward to growing the company, safe in the knowledge that we have the backing of such an accomplished fi nance company. 5 InsidePrint

6 Meet the Team Paul Philbrick Sales Director, Print division Tell us about your role and a typical day at Close Brothers Asset Finance. As Sales Director, I look after the Print division team. This involves me helping my colleagues in achieving their potential but also making sure my own customers needs are being looked after. It is very challenging and there never seems to be enough hours in the day, with a lot of my time spent behind my desk problem solving and creating bespoke deals. When I m not doing that though, I am meeting a prospective customer which is what I enjoy the most. What motivates you in your role? Seeing the team succeed and also individuals grow within their roles. There is real team camaraderie and friendly competition between peers in terms of sales fi gures, but the real crux is of course building deals that are suitable for both the client and for the bank. It is always rewarding to see the differences we help make to companies through asset fi nance. These customers would otherwise not be able to afford to invest in equipment they quite often desperately need to maintain their competitive edge. I enjoy being that point of contact for my customers when they need fi nancial advice and guidance with their next steps for funding. What do you enjoy most about working for Close Brothers? Meeting new clients and fi nding solutions for them that other lenders might not be able to offer. Developing bespoke fi nancial packages for our customers enables us to stand out compared to other lenders. I also enjoy the fl exibility we have at Close Brothers which may prohibit other competitors who are restricted within certain parameters. We work closely with our customers to fi nd the perfect solution to bring their investment ideas to life. If you had to choose one thing, what do you think you re the best in the world at? Video games especially Call Of Duty. What did you want to be when you were growing up? A Fighter pilot. Two words Top Gun. If you could print yourself into anything what would it be and why? I d print or clone myself. That way I could be everywhere I wanted to be at once. Close Brothers Asset Finance is a trading style of Close Brothers Limited. Close Brothers Limited is registered in England and Wales (Company Number ) and its registered offi ce is Crown Place, London, EC2A 4FT